Assumptions: a) Simple Random Sample
b) n(p)(1-p) ≥ 10
Step 1: Set up null and alternative hypotheses.
H0: p =
H1: p ≠
Step 2: Determine level of significance of hypothesis test.
α =
(Note: α = level of significance of hypothesis test
= probability of making Type I error.)
Step 3: Calculate Test Statistic.
p̂ = sample proportion =
(Note: p̂ = x/n)
n = sample size =
Calculate Test Statistic z:
(Note: Value of p comes from Step 1)
Step 4: Find Critical Values (-zα/2, zα/2)
-zα/2 is the z-score corresponding to the left-tail area.
zα/2 is the z-score corresponding to the right-tail area.